Exelixis Maintains RCC Dominance, Sets Sights on NET and CRC

Exelixis maintains a stronghold in renal cell carcinoma with its CABOMETYX drug. The company has also launched NET (neuroendocrine tumor) treatment and is awaiting a crucial CRC (colorectal cancer) readout. Exelixis has a strong track record and the company is a key player in the RCC market.

Exelixis, Inc. (EXEL) has maintained a strong presence in the renal cell carcinoma (RCC) market with its flagship drug, CABOMETYX (cabozantinib). The company's leadership in this indication has been bolstered by its ability to secure a significant market share and expand its therapeutic scope. In addition to its RCC portfolio, Exelixis has recently launched NET (neuroendocrine tumor) treatment and is awaiting a crucial CRC (colorectal cancer) readout, further solidifying its position in the oncology landscape.

CABOMETYX in RCC

CABOMETYX has consistently been the top prescribed tyrosine kinase inhibitor (TKI) in the United States for RCC, holding a 45% market share in the second quarter of 2025 [2]. The drug's effectiveness is augmented by its approval for use in combination with Bristol Myers' OPDIVO (nivolumab) in the first-line setting, making it a preferred option for patients. Despite facing competition from Merck's KEYTRUDA and Eisai's LENVIMA, CABOMETYX's strong efficacy signals and market share underscore its significance in RCC treatment.

Expansion into NET

Exelixis has expanded its CABOMETYX franchise into the NET market, launching the drug for previously treated advanced neuroendocrine tumors. The company reported a 35% new patient share in the second-line+ NET market, indicating strong prescriber confidence in CABOMETYX over other oral therapies like everolimus and sunitinib [2]. This expansion is a strategic move to diversify Exelixis' revenue streams and capitalize on the growing demand for NET treatments.

Upcoming CRC Readout

A pivotal CRC readout is expected to further enhance Exelixis' portfolio. The company's zanzalintinib, an oral investigational TKI, demonstrated positive top-line results in the late-stage STELLAR-303 study, which randomized patients with previously non-microsatellite instability-high metastatic colorectal cancer [1]. The study's positive data increases the likelihood of regulatory success, positioning zanzalintinib as a potential game-changer in the CRC market.

Financial Health and Stock Buybacks

Exelixis' strong financial health is evident in its Q2 2025 results, with a 32.5% net margin and $1.4 billion in cash and investments [2]. The company has authorized up to $500 million in stock buybacks, indicating confidence in its future growth prospects. The company's ability to generate cash and invest in its pipeline is a positive sign for shareholders.

Conclusion

Exelixis' stronghold in RCC, coupled with its recent expansion into NET and promising CRC pipeline, positions the company as a key player in the oncology market. While Merck's KEYTRUDA enjoys a dominant place in the oncology space, Exelixis' focused strategy and strong financial health make it an attractive investment opportunity.

References:
[1] https://finance.yahoo.com/news/exelixis-vs-merck-oncology-stock-124500473.html
[2] https://seekingalpha.com/article/4816610-exelixis-rcc-stronghold-net-launch-and-crc-readout-that-matters